First Sound Bank adds $18M to 2008 loss

First Sound Bank of Seattle said Thursday it lost $20.1 million in 2008 rather than the $1.8 million it initially reported earlier this year.

The majority of that loss — $18.3 million — is related to the company’s purchase of Puget Sound Leasing Co. in March 2008, said Jan Gould, executive vice president and chief financial officer.

The bank also lost money from the reduction in value of the assets associated with Puget Sound Leasing Co. First Sound Bank, with $247 million in assets, filed suit late last year against the former owners of the leasing company in federal court in Seattle.

The remainder of the bank’s year-end loss comes from an increased reserve for future loan losses, which increased by $3 million to $8.2 million during the year.

In December, the bank received $7.4 million in federal bailout funds and remains well-capitalized, according to its report.